Recent on-chain analysis from Glassnode reveals critical price levels for Solana (SOL) that could determine its next major move. The data shows significant supply clusters that may act as strong support and resistance zones in the coming weeks.
Understanding Solana’s On-Chain Supply Distribution
Glassnode’s UTXO Realized Price Distribution (URPD) analysis has identified several crucial price levels where large amounts of SOL tokens have accumulated. This metric is particularly valuable as it shows where investors have positioned themselves, potentially indicating strong support and resistance zones. As previously reported, the $135 level has emerged as a critical battleground for Solana’s price action.
Key Support Levels Identified
The analysis highlights several critical support levels:
- $112: Currently holds 9.7 million SOL (1.67% of supply)
- $94-$100 zone: Collectively holds 21 million SOL (3.5% of supply)
- $53: The next major support level if above zones fail
Resistance Zones to Watch
Two major resistance levels stand out in the data:
- $135: Holds 26.6 million SOL
- $144: Contains 27 million SOL
Market Implications and Trading Outlook
The current price action shows SOL maintaining strength above $130, with a 5% gain in the last 24 hours. This movement suggests bulls are attempting to establish control above the crucial $135 resistance zone.
FAQ Section
What is URPD and why is it important?
URPD (UTXO Realized Price Distribution) shows the price levels where tokens were last transacted, helping identify potential support and resistance zones based on actual investor behavior.
What happens if Solana breaks below $112?
A break below $112 could trigger a cascade to the $94-$100 zone, where significant supply clusters exist. If these levels fail, the next major support isn’t until $53.
How significant is the current $135 resistance level?
The $135 level is crucial as it holds 26.6 million SOL tokens, making it a significant psychological and technical barrier for price advancement.